Question: *I have seen this question on here with different answers. I have seen A, D, and C. Can you please help me understand as I

*I have seen this question on here with different answers. I have seen A, D, and C. Can you please help me understand as I am now confused. *

Alison's Accessories is a high volume worldwide fashion house with outlets in 65 countries. Sadly, space does not permit an exhaustive list but once the test is over, check out their website. Kalil, the supply chain manager is conducting her usual thorough analysis of her final four candidates for supplier and has developed the following tables of pertinent costs and other shipping metrics. Regardless of supplier, Alison's Accessories will operate 220 days per year and has forecast annual demand of 250,000 units. Kalil has obtained quotes for three different shipment sizes (Freight Costs table). All costs are in US Dollars.

Table 1

Unit costs

Supplier

Price/Unit

Carrying Cost

A

123

22

B

125

19

C

126

18

D

100

40

Annual Freight Costs

Supplier

15,000 units

25,000 units

50,000 units

A

380,000

260,000

237,000

B

615,000

547,000

470,000

C

285,000

240,000

200,000

D

380,000

260,000

237,000

Other Costs

Supplier

Lead Time

Annual Admin Costs

A

30

250,000

B

15

275,000

C

7

225,000

D

90

2,500,000

Use the date in Table 1. Analyze costs and make recommendations regarding the shipping options and suppliers. Which combination of shipping amount and supplier yields the lowest total cost?

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